Gilead Paying $97 Million in Letairis False Claims Case

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The Justice Department says Gilead Sciences will pay $97 million to resolve allegations that it violated the False Claims Act by illegally using a foundation as a conduit to pay the copays of thousands of Medicare patients taking the firm’s Letairis pulmonary arterial hypertension drug. A department statement says that Gilead used the charitable foundation to pay copays because it knew that the prices it set for Letairis could otherwise pose a barrier to purchasing the drug.

“From 2007 through 2010, Gilead made payments to the foundation which, in turn, used those funds to pay copays of patients prescribed Letairis,” the statement says. “The government alleged that Gilead routinely obtained data from the foundation detailing how much the foundation spent for patients on Letairis and then used this information to decide how much to pay to the foundation and to confirm that its payments were sufficient to cover the copays of only patients taking Letairis. The government also alleged that, to generate revenue from Medicare and induce purchases of Letairis, Gilead referred Medicare patients to the foundation, which resulted in claims to Medicare to cover the cost of Letairis.”

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